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27 May 2022

Business Insider Bangladesh

Oil prices end mixed as traders assess multiple risks

UNB || BusinessInsider

Published: 14:18, 13 May 2022   Update: 15:09, 14 May 2022
Oil prices end mixed as traders assess multiple risks

Photo: Collected

Oil prices settled mixed on Thursday as market participants weighed risks both on the supply and the demand sides.

The West Texas Intermediate for June delivery added 42 cents, or 0.4 percent, to settle at 106.13 U.S. dollars a barrel on the New York Mercantile Exchange.

Brent crude for July delivery decreased 6 cents, or nearly 0.1 percent, to close at 107.45 dollars a barrel on the London ICE Futures Exchange.

The US oil benchmark eked out a gain despite data showing a hefty rise in US crude stockpiles.

The US Energy Information Administration reported Wednesday that the nation's crude inventories increased by 8.5 million barrels during the week ending May 6.

Analysts surveyed by S&P Global Commodity Insights had forecast a fall of 1.8 million barrels.

Concerns over tight supplies remain on the market as the European Union mulled an oil embargo against Russia.

Traders also worried about a slowdown in demand growth.

In its monthly report released on Thursday, the Organization of the Petroleum Exporting Countries revised down its forecast for world oil demand growth in 2022, citing impacts from geopolitical tensions and the Covid-19 pandemic.

Analysts cautioned that investors need to be prepared for more volatility.

"Amid the widening supply and demand uncertainties, oil market volatility remains rife," the Paris-based International Energy Agency said on Thursday